If There Are No Externalities, a Competitive Market Achieves Economic

question 161

Multiple Choice

If there are no externalities, a competitive market achieves economic efficiency.If there is a negative externality, economic efficiency will not be achieved because

• A)too little of the good will be produced.
• B)too much of the good will be produced.
• C)a deadweight loss will occur that is equal to the area under the demand curve for the good.
• D)economic surplus is maximized.

---

Definitions:

Safe Streets Act

Legislation aimed at reducing traffic-related fatalities and injuries, often through enforcement measures, improvements in road design, and public education campaigns.

Moral Regulation

The constitution of certain behaviours as immoral and thereby requiring public regulation.

Normalization Of Law Breaking

The process by which illegal or unethical activities become regarded as normal or acceptable within a society or group.

Gang Membership

The act of belonging to an organized group often involved in criminal activities and identified by a common identity or purpose.